After an internal review found incorrect measurement dates used for certain stock-option grants, Landry’s Restaurants disclosed that it will restate its results.
Although the restatement is not yet complete, Landry’s pegged the total non-cash charges over a 14-year period, through 2001, at between $6 million and $8 million after tax.
The restaurant company’s review uncovered no evidence of intentional backdating or other wrongdoing. Even so, Landry warned that it expects to be the target of an informal inquiry by the Securities and Exchange Commission.
The company also said it would delay filing its annual report.
Landry’s elaborated that it identified certain grants that used an incorrect measurement date to determine the amount of compensation expense or that failed to record compensation expense under generally accepted accounting principles. The incorrect dates were used primarily due to administrative errors or to incomplete granting actions as of the previously used measurement dates, Landry’s stated.